Brand Engagement Network (BNAI) saw its shares double after securing a contract from a top ad agency for a custom AI solution for a pharmaceutical client. Despite the surge, the stock is still down 75% year-to-date. The agreement showcases BNAI’s ability to break into regulated industries, boosting its commercial prospects.

The contract announcement propelled BNAI’s shares as it promises significant revenue in the near term, with projected development revenue of $250,000 in Q4 and recurring license fees in 2026. The move into the pharma sector validates BNAI’s technology platform, enhancing its appeal for investors in the upcoming year.

Although BNAI is a penny stock, recent technical indicators suggest continued momentum, potentially pushing it towards $10. With an RSI of 49, there’s room for further growth without becoming overbought. The company’s broader AI healthcare strategy and partnerships in Latin America add to its investment appeal.

Despite limited analyst coverage, BNAI is rated as a “Strong Buy” with a price target of $20, indicating the potential for a significant rally. Investors should consider the company’s growth prospects beyond the current contract, including expansion into Latin America and the launch of Skye Salud in Mexico.

Read more at Yahoo Finance: This Little-Known Penny Stock Is Doubling Thanks to AI. Is It Too Late to Buy Shares?